3 financial questions for newlyweds

Congratulations — you just tied the knot, and now it’s time to
combine finances with your new spouse. However, you are not quite
sure how to do it. How do you readjust when you have suddenly
become one-half of a team?

The issue can be challenging, especially if you are in the habit
of managing your own money, paying your own bills and coping with
your own spending habits.

Here are three questions you and your new spouse should ask and
discuss.

Who is in charge?

You both have an equal say in all financial decisions, and no
big choices should be made without consulting each other. Still,
you should designate one person to be the household money
manager.

Why? Unless you are each paying for separate bills, putting one
person in charge of collecting and paying bills eliminates any
potential confusion — and the missed payments and late fees it can
cause.

The money manager should also regularly monitor your spending to
make sure you are staying on track with your budget.

What is the budget?

For combined finances to work, you need to each be on board when
it comes to both fixed expenses (phone bill, insurance, utilities,
etc.) and variable expenses (groceries, entertainment, “fun
money”).

Without an agreed-upon budget, day-to-day expenses can create
big arguments. Having a benchmark to gauge your spending makes it
much easier to make decisions like whether or not to go out to eat
for a second time this week.

Plus, a budget is a good point of entry for discussing the
overall lifestyle you both would like to maintain.

What are your big goals?

Beyond simply paying the day-to-day bills, you need to be on the
same page when it comes to your long-term financial goals as a
couple. So, ask the following:

What are your savings goals?

How much will you allocate toward savings each month?

How will you start planning for retirement?

If you have any debt, how aggressive will you be toward paying
it off, and not incurring any more?

If your long-term goals are not in alignment, short-term
decisions like what to do with your latest tax refund or your
holiday bonus can be more stressful than they need to be.

Paula Pant helps people ditch the cubicle and live on their
own terms. She’s traveled to 30 countries, owns six rental property
units and hasn’t had an employer since 2008. Her blog, “Afford
Anything,” is the gathering point for a tribe that refuses to say
“I can’t afford it.” Follow Paula on Twitter: @AffordAnything.